Galluping Stock Market
Larry Kudlow thinks the economy has less to do with the stock market surge than polls showing that Republicans are about to make huge gains in Washington and state governments: Could it have been the new Gallup poll that drove stocks up almost 200 points on Tuesday? That blockbuster survey, regarded by many as the blue-chip gold standard for election forecasting, pointed to an unprecedented Republican landslide tsunami in the generic congressional race. That blowout could include a GOP House gain of 65 to 70 seats, and a bare-majority 10-seat pickup in the Senate. Released Monday night, the Gallup numbers demolished the new narrative of the elite mainstream media in Washington, and their prediction that somehow the Democrats are mounting a serious comeback based on frantic Obama campaigning and a slew of multimillion-dollar negative campaign ads. Kudlow goes on to explain some of the economic factors that might have played into the stock numbers, but the pretty much dismisses their impact: What I do think, however, is that highly profitable companies would love to get Washington out of their hair. Anything that even slows down the federal tax-and-regulatory pawing of American firms could conceivably prompt businesses to unleash their massive cash hoard into something that more closely resembles a normal capital-goods-investment
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on October 7, 2010. Filed under